WASHINGTON - CONSTRUCTION spending fell by a larger-than-expected amount in October, another indication the problems facing builders in the form of a sinking economy and severe credit crisis are deepening and likely to persist.

The Commerce Department reported on Monday that construction spending dropped by 1.2 per cent in October, much bigger than the 0.9 percent decline many analysts expected.

LONDON - EUROPEAN and most Asian stocks fell sharply Monday ahead of an expected lower opening on Wall Street amid renewed signs that the world economy is slowing down sharply.

The FTSE 100 index of leading British shares was down 113.61 points, or 2.7 per cent, at 4,174.40, while Germany's DAX was 136.26, or 2.9 per cent, lower at 4,533.18. The CAC-40 in France was 84.86, or 2.6 per cent, lower at 3,177.82.

OIL prices fell over 6 per cent Monday, to below US$51 (S$78) a barrel, after Opec decided not to cut production at an informal meeting in Cairo on Saturday and on more evidence the global economic slowdown will hurt demand for crude.

By midday in Europe, light, sweet crude for January delivery was down US$3.62 to US$50.81 a barrel in electronic trading on the New York Mercantile Exchange. The contract had settled down a penny at US$54.43 on Friday.